Events after the reporting period
Lufthansa Group successfully places hybrid bond on capital market and redeems existing bonds
On 8 January 2025, Deutsche Lufthansa AG successfully issued an unsecured euro hybrid bond with a total volume of EUR 500m. The bond bears interest at 5.25% per annum and has a term of 30 years, with a first issuer call date after six years, i.e. on 15 January 2031.
The transaction underlines the trust that the capital markets have in the Lufthansa Group. High demand enabled advantageous financing terms and the term until the first repayment date optimally complements the maturity profile.
Deutsche Lufthansa AG also repaid a EUR 750m bond from 2021 from the EMTM programme on 11 February 2025.
Lufthansa Group finalises 41% stake in ITA Airways
The acquisition of a 41% stake in ITA Airways by Deutsche Lufthansa AG was completed on 17 January 2025 by means of a EUR 325m capital contribution. As a result, the Italian airline is now part of the Lufthansa Group, where it becomes the fifth network airline. Jörg Eberhart, Head of Strategy & Organizational Development at the Lufthansa Group, and Lorenza Maggio, Vice President of Sales for EMEA at Lufthansa Group Airlines, were appointed to the five-member Board of Directors and the operational management of ITA Airways.
Lufthansa Group strengthens wet lease partnership with airBaltic
The Lufthansa Group signed a purchase agreement for convertible bonds on 29 January 2025 that represents a stake of ten per cent in the Latvian airline airBaltic. The transaction price was EUR 14m. The Lufthansa Group also gets a seat on the Supervisory Board of airBaltic. The transaction is planned to close in the second quarter of this year, subject to anti-trust approval.
The transaction builds on the existing wet lease contract between the Lufthansa Group and airBaltic and is intended to strengthen airBaltic as a strategic partner. The convertible bonds will be converted to common shares if airBaltic goes public. The Lufthansa Group will hold a stake of at least 5%.